FG Targets Ambitious N40trn Revenue in 2026, Urges Stronger Tax Compliance

The Federal Government has set an ambitious revenue target of N40 trillion for 2026 and is calling on all tiers of government to strengthen tax compliance to achieve it. The Nigeria Revenue Service disclosed the target during a national workshop in Abuja focused on strengthening tax compliance under the new tax regime.

The Executive Chairman of the Nigeria Revenue Service, Dr. Zacch Adedeji, described the target as a “Herculean task” that will require stronger cooperation among government institutions and improved compliance by public sector entities. Adedeji noted that the agency faces enormous pressure to generate the revenue to support allocations to the three tiers of government.

“Our major role at the Nigeria Revenue Service is to sustainably finance the Federation Account Allocation Committee,” Adedeji stated. “This fund is the financial lifeblood of the three tiers of government and is used to finance the critical developmental projects that our citizens depend on”.

The target represents a significant increase from the N28.23 trillion collected in 2025, which exceeded the N25.2 trillion target by 12 percent. Non-oil taxes drove the 2025 performance, collecting N21.46 trillion against a projection of N18 trillion, while oil taxes fell short by 5.2 percent.

Adedeji explained that the higher 2026 projection reflects recent tax reforms that have transferred petroleum royalties and mineral revenues to the NRS, significantly expanding its mandate. “In the light of the tax reforms that transfer petroleum and mineral royalty and other revenue to the NRS, the total target for taxes, royalty and other minerals is N40.7 trillion,” Adedeji said.

The NRS chairman expressed concern over compliance imbalances among states and government-owned enterprises, describing the trend as harmful to institutional fairness. He announced plans to reward the most tax-compliant states starting from the end of 2026 to drive motivation and encourage healthy competition.

“Our goal is to move away from an enforcement-dependent approach and move to a collaborative, voluntary compliance framework where every institutional stakeholder contributes its fair share to our collective national prosperity,” Adedeji stated.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the new tax regime as a central pillar of the administration’s structural reform agenda. Oyedele assured that the reforms would expand the tax net without increasing the burden on citizens, funding roads, healthcare, education, and national security.

The Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, noted that efficient domestic resource mobilisation is critical to achieving sustainable development goals and reducing dependence on volatile revenue sources. “The revenue administration can no longer operate in silos, particularly in areas of data management, taxpayer education, and compliance monitoring,” Ogunjimi stated.

With the 2026 target now set, all eyes are on the NRS to deliver what Adedeji himself has called a formidable challenge requiring unprecedented collaboration across Nigeria’s fiscal landscape. The agency is building on a strong 2025 outing, which saw revenue grow by 30.3 percent compared to 2024.